(MENAFN– ecpulse) This week carried several crucial data to once again confirm that the U.S economy revival is on track but remains slow but sure knowing that a report this week showed us that the economy expanded at a faster pace last quarter while that durable orders unexpectedly climbed in August, last week jobless claims cheerfully dropped and the country’s consumer spending climbed for a fourth month.
In fact this week revealed to us that the U.S. economy expanded at a faster rate in the second quarter from the prior quarter, further showing the U.S. economy is overcoming the effects of higher income taxes and federal budget cuts.
Gross Domestic Product (GDP) increased at a 2.5 percent annualized rate, in line with the second estimate, after a growth of 1.1 percent in the first quarter. Analysts had expected the final reading to show growth of 2.6 percent rate in the second quarter.
While that the consumer country’s jobless claims fell to a near six-year low last week; dropping by 5,000 to 305,000 in the week-ended September 21, indicating that the country’s labor sector remains on enhancing but keeping in mind that this overall improvement within labor conditions remain insufficient according to the FOMC members and Federal Reserve.
As for the country’s consumer spending, it increased cheerfully for the fourth consecutive month, boosted by improving economic conditions that keep on supporting household income.
Household spending, which accounts for roughly 70 percent of the U.S. economy, increased 0.3 percent in August, following a 0.2 gain in July, according to the Commerce Department. Analysts had expected a rise of 0.4 percent.
Plus Income rose in line with estimates at 0.4 percent, the biggest rise in six months , meeting estimates after a rise of 0.2 percent in the month before.
Now the PCE price index decreased to 1.2 percent in the year-ended August from 1.3 percent the month before.
However, Core PCE, which excludes volatile items such as energy and food, climbed 0.2 percent in August. The slight increase in core inflation points to a pick-up in demand.
On the other hand Sales of new U.S. homes cheerfully climbed in August following two of the worst months this year, indicating that the record-high mortgage rates still has its effect on the housing sector and its recovery.
Sales increased 7.9 percent to a 421,000 annualized pace following a 390,000 rate in the prior month that was less than previously estimated. Sales slumped 14.1 percent in July whereas the country’s pending home sales for August came in at -1.6%; worse than the projected -1.0%
However up till now the possibility of a government shutdown next week is only increasing mainly after that today the Top House Republican leaders rejected the short-term spending plan expected to be passed by the Senate in coming days.
Now once that the bill returns to the House; any shift or new move to change it would only suggest that the struggle over funding the government would almost certainly continue at least until the final minutes of the fiscal year late on Monday night since the Senate’s hidden secret.
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